| Summary: | 碩士 === 國立臺灣大學 === 財務金融學系研究所 === 86 === The mainstreams of capital structure researches are static
trade off frmaework and the pecking order framework.The former
emphizes that firms have their targeted capital structure and
move toward the target in the long run.But the pecking order
theory suggests that :
1.firms use internal sources of fund first if need to raise fund
2.firms prefer debt to equity if external financing is required.
Therefore, there is no targeted capital structure in a firm.
The objective of the thesis is to test the explaining ability
of the pecking order model in Taiwan and to make relative
researches of Taiwanese firms.
Because Myers & Majluf(1984) suggested that asymmetric
information is a major element of pecking order model, I select
the firms that went public in 1992 as my sample.There are total
34 firms and covering 12 industries.It is because that their
short track records are likely to make them to face greater
asymmetric information problems than other firms.
There are 2 steps in the research: First,I use the Logit
regerssion analysis to test the above 2 points of pecking order
model.Second, I run the nested causality to identify the
relationship between financial variables and the capital
structure in a firm and to make a comparison with the output of
Logit regression analysis.
The empirical results indicate that:
1.firms in Taiwan do not follow the pecking order model
2.we can not find strong suppout for the static trade-off model
In short, neither the pecking order model nor the static trade-
off model can explain the financing decisions in Taiwan
completely. It may reflect the unique of financing decisions
and the importance of issuing public equity for Taiwanese firms.
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